VSG - Visiomed Group

[Cris]

With the Australian launch of the Funhaler approaching it is a good time to review potential.

Visiomed stated:

150K Funhaler units = profitability

500K+ Funhaler units = potential $3M+ profit

Potential Market for Funhaler
(based on Population & Asthma Statistics as detailed below)

As Funhaler will be launched in Australia, I thought it would be a good time to estimate the size of its potential local market. Funhaler will have a worldwide market so I've also taken the USA market into consideration (for starters).

To obtain a conservative ESTIMATE of potential Funhaler sales, I collected a few stats. These estimates are conservative because the market for the Funhaler unit is broader than just parent/child use.

NB The unit would also be invaluable to; 1) hospitals, 2) GP clinics, 3) Paediatricians, 4) Asthma & Related Respiratory Specialists, 5) Ambulance Officers/Paramedics, 6) Child Health Clinics, 7) Child Care & School First Aid resources, etc.

A conservative estimate of the potential market (Aust & USA only) follows:

AUSTRALIA - 207,245+ FUNHALER UNITS

USA - 1,108,361+ FUNHALER UNITS

The Australian market alone has the potential to make Visiomed profitable.

Clearly the USA market is a very attractive proposition.

Now let's consider if just one hospital in China decided to purchase ...



BASIS FOR ESTIMATES FOLLOWS:
1) AUSTRAIA
2) USA

1) Australia

population latest count Dec 2003 - 20,008.7 (Census Aug 2001 - 18,972,350 people counted - children 0-4 years = 1,243,969, 5-9 years = 1,331,926 counted)

Source: Asthma Foundation of NSW

. 2.2 million people Australians have asthma. This represents an eight per cent increase since 1989-90.
. 1 in 6 children and 1 in 10 adults have been diagonised with asthma.
. Australia has one of the highest prevalence of asthma in the world.
. Asthma is the most commonly reported long-term condition for children aged under 15, and more likely to affect boys than girls (15 per cent to 12 per cent)
. Asthma is one of the leading causes of childhood admission to hospital and absenteeism from school and work.
. Asthma ranks among the 10 most common reasons for seeing a GP.

= Australian Potential Market: 207,245 units based on year 2001 census and 1999 asthma prevalence statistics

www.asthmansw.org.au

2) USA

population latest count in 2000 - 281,421,906 (child under 5 years 19,175,798)

Source: National Institutes of Health: National Heart, Lung, and Blood Institute; Data Fact Sheet' Asthma Statistics; Jan 1999

Introduction

'Asthma ranks among the most common chronic conditions in the United States, affecting an estimated 14.9 million persons in 1995 and causing over 1.5 million emergency department visits, about 500,000 hospitalizations, and over 5,500 deaths.magnitude of the problem. ... '

Prevalence

'In 1995, the prevalence of self-reported asthma was 56.8 per 1,000 persons. The prevalence was higher among children than adults and higher among blacks than whites. Among the general population, the prevalence of asthma was higher among females than males (Figure 1); however, among children, the prevalence was higher among males.

The prevalence of asthma has been increasing since the early 1980s for all age, sex, and racial groups. The overall age-adjusted prevalence of asthma rose from 30.7 per 1,000 population in 1980 to a 2-year average of 53.8 per 1,000 in 1993-94. This represents an increase of 75 percent. The prevalence among children ages 5 to 14 increased 74 percent, from 42.8 per 1,000 in 1980 to an average of 74.4 per 1,000 in 1993-94. Among children up to 4 years of age, asthma prevalence increased 160 percent, from 22.2 per 1,000, the lowest prevalence among any age group, to a 2-year average of 57.8 per 1,000 in 1993-94, the second highest prevalence behind children ages 5 to 14 (Figure 2). ... '

= USA Potential Market: 1,108,361 based on year 2000 population and 1999 asthma prevalence statistics

Considerations:
1) Cash - capital raising subsequent to end of financial year + balance of grant funding
2) Costs - Recently announced prospect of reduced operating costs
3) Market Acceptance - Spacers recommended for target market - Funhaler trial results = evidence of improved acceptance and improved outcome
4) Competition - other spacers
5) Direct competition - none - proprietary product
6) Distribution - Aust - Network of Asthma Assoc - further details to be advised
7) Distribution - elsewhere - further details to be advised

[kooka1956]

Hi Chris . Have followed VSG for a while and rode it down from 6cents .It looks as if they have a good product and the powers that be in USA have given it the thumbs up .When do you think manufacturing will begin ?
Regards KOOKA .

p.s. Are you the same Chris who holds. CBD AND WAL ?

[Joe Blow]

Here's a 12 month chart. Looks like VSG has found some good support at 3 cents.

[Cris]

Hi Chris . Have followed VSG for a while and rode it down from 6cents .It looks as if they have a good product and the powers that be in USA have given it the thumbs up .When do you think manufacturing will begin ?
Regards KOOKA .

p.s. Are you the same Chris who holds. CBD AND WAL ?

Hi Kooka1956,

Can't be far away - guess 1-2 months because Aust launch is soon and they'll need stock for that. I imagine they'll manufacture in quantities according to plans - sufficient for Aust first, then international.

Regards,
Cris

ps Did hold CBD - divested. Not holding WAL at present but it is on the watch list.

[Cris]

Here's a 12 month chart. Looks like VSG has found some good support at 3 cents.

Hi Joe Blow,

VSG's recent progress toward commercialisation and profit has gone largely unnoticed. They have greater potential than many realise so here's hoping you're right on that one!

Regards,
Cris

[Porper]

I've been watching VSG for a while now, slowly but surely going down.

Then today a big update and the share price up about 14 %.

Basically VSG say they will start production in December and should be selling the Funhaler device by Jan. 2005.

Selling 300,000 will produce 2 million net profit, not bad, of course the big question is will anybody want them.

In trials they do appear to encourage youngsters to take their medication which must be encouraging.

All in all a big gamble but looking better than it did 6 months ago, and if the Funhaler does catch on the gain will be phenomenal.Worth watching for a while I think, if I get a spare bit of cash from my immense capital gain on MUL(ha ha) I may just speculate on a few.

[Cris]

I'm disappointed Visiomed are divesting the skin cancer application of their Expert System technology but only from a personal perspective. I think it could have been of real assistance to rural communities who have limited access to specialist services.

All applications for this technolgoy are well-suited to remote diagnostics (e-health).

From an investment perspective however; I"m pleased.

I suspect there was some resistance from this particular specialist arena and Visiomed has made a tough but wise financial decision in divestment.

Visiomed have retained rights for all other medical applications for the technology so they need only focus on applications where there is evidence of both market need and potential. I'm looking forward to hearing of further developments.

Back to the present.

Visiomed is one of only a handful in their industry sector to be this close to;

. realising commercialisation of a unique Aussie product, and;
. internally fundng their operational and developmental activities.

In terms of share price (and based on milestones achieved to-date), I"m hoping to see a fairly steady climb to and through 4c in the very near future.

Major milestones and SP catalysts:

1) Australian launch by Fiona Stanley
2) Media coverage - would appeal to Mum & Dad investors as they would readily relate to this stock
3) confirmation of reputable US distributor, and; FDA approval
4) Sales results
5) confirmation of international distributors and approvals
6) R&D - though this could be kept confidential until late stage to retain market advantage

If Mum and Dad investors become aware of both Visiomed and Funhaler (which is highly likely given it's uniqueness, relativity, and broad community appeal), it's possible VSG could outperform.

Other thoughts?

Regards,
Cris

[Gordon Gecko]

Been doing a bit of research on this after seeing the first post. There is one concern, there is other medication ,that is still possibly a few months away from becoming available, that purports to have a cure for asthma.

This would affect the demand for the funhaler.

Any views?

[Porper]

Thanks for posting that Gordon Gecko, I didn't realise there was a supposed cure for asthma, but will look into it, obviously this will make a big difference long term.VSG are one of the companies on my shortlist, maybe re-think now.

[Cris]

Hi Gordon,

Thanks for contributing.

As with all major health conditions (where money is to be made on a large scale), there will always be clinical research, development, trials, etc involving bio-advances, new approaches based on specific asthma triggers, new products, and of course; prevention strategies.

I do a substantial amount of research and there are numerous advances in Asthma treatment, however; at this time I am unaware of any treatment that offers a cure or that would impact substantially on inhaled medication or devices that aid inhaled medication, in the near future - specifically for this age group and on an international scale.

Long term is a different story and I think we will see some major advances.

If I've missed something ... I would appreciate hearing if you know of a company FDA approved to market an asthma product (for young children and toddlers) that does not utilize an inhaler/spacer for delivery.

Thanks,
Cris

[Gordon Gecko]

My sister-in-law works for a legal firm in the US that assists a lot of comapanies world wide with setting up contracts to make application for FDA approval.

The info I have is that a Australian University has identified a protein (I think it is called EBP or CBP) that asthma sufferes don't have. Medication is available that contains the protein. The medication can be in liquid or tablet form and it is a private company that is looking to develop it. They are also doing additional research is underway to find a way to help the body produce its own protein from a young age.

I will see if I can get more written info that I can post on the site.

[Cris]

Device, insurer stocks up on Bush win

By Laura Gilcrest, CBS MarketWatch
Last Update: 1:41 PM ET Nov. 3, 2004

WASINGTON (CBS.MW) - As George W. Bush won re-election Wednesday, stocks across the medical device and health insurance sector leaped upward

Bush's victory for a second term confirmed Wall Street claims that those industries heavily favored the incumbent as the "market-friendly" choice. On Wednesday morning, challenger Sen. John Kerry reportedly conceded victory to Bush after determining the president's lead in the key state of Ohio was insurmountable.

In the medical device arena, shares of coronary stent maker Boston Scientific (BSX: news, chart, profile) shot up 3 percent to $36.03 in mid-afternoon trading, cardiac device giant Guidant's (GDT: news, chart, profile) stock climbed 2 percent to $64, while device maker Baxter International's (BAX: news, chart, profile) shares rose 1.2 percent to $31.04.

Managed care stocks also were hopping, with health insurer Humana's (HUM: news, chart, profile) shares soaring 7 percent to $ 21.07 by mid-day, United Health Care (UNH: news, chart, profile) stock jumping 5 percent to $75.47, and First Health Group Corp. (FHCC: news, chart, profile) shares gaining 3 percent to $16.41 in afternoon trading.

Meanwhile, shares of drug distributor PerkinElmer (PKI: news, chart, profile) were up 2 percent to $21.45 in afternoon trading, reflecting optimism that drug price inflation -- on which the distribution industry still depends, may pick up under a re-elected Bush Administration.

Other notable health care stock jumps in afternoon trading included: Express Scripts (ESRX: news, chart, profile), up 6 percent to $67.11, Medco Health Solutions (MHS: news, chart, profile), rising 5 percent to $35.72, and Wellpoint Health Networks, climbing 4 percent to $98.97.

These sectors' movement on the heels of Bush's re-election reflects a changing health care landscape, analysts say.

"I thought a while ago that [the election outcome] wouldn't matter," said Belmont Harbor Capital -Soleil analyst Daniel Owczarski, because medical device firms weren't affected by issues of Medicare reimbursement and wasteful spending concerns.

But more and more, device makers are being lumped together with pharmaceuticals from a political standpoint, he said.

As a result, device companies had worried that a Kerry presidency might usher in more price controls and limited coverage, particularly for some of the newer technologies, Owczarski said.

Device reimbursement hasn't been an issue under the Bush administration and the Center for Medicare and Medicaid has readily covered cutting-edge medical devices if a particular technology would cut hospitalization costs down the line, he said.

"(But) a Kerry-led administration might question the economic impact of the newer technologies," Owczarski said Tuesday.

Analyst Eli Kammerman of Cathay Financial agreed, noting that makers of the more expensive medical devices and those that substitute for drug therapy -- such as drug-eluting coronary stents -might risk less reimbursement under a Kerry-led administration.

Boston Scientific (BSX: news, chart, profile) has led the field in the stent market, with increased competition expected by 2007.

What's more, Kerry's plan to roll back the tax cut for the wealthiest Americans might stifle medical device innovation, by discouraging individuals from forming start-up medical device companies, he said.

"There needs to be an incentive for taking the risk," Kammerman said.

Managed care firms could have lost their edge under a Democratic administration, he added.

"My view is that Kerry's intent to expend health care coverage [via the Congressional Health Plan] would be generally bad for the free market in health care and would lead to greater pricing pressure and price controls," Kammerman said.


Laura Gilcrest is a reporter for CBS MarketWatch based in Washington.

http://cbs.marketwatch.com/news/story.asp?guid=%7B5DCF8E37-1AE3-4D90-BBB6-12BD49D5B7AA%7D&siteid=google&dist=google

[Cris]

Thanks Gordon. I look forward to hearing.

There is quite a bit of successful research regarding proteins and allergies ... and related to that there is a belief that a percentage of asthma sufferers (those whose asthma is triggered by specific allergens) could benefit from medication or supplements that diffuse allergic triggers.

I haven't seen anything in the news regarding this particular area of research in relation to one specific asthma cure so I would be very interested in learning of anything new.

Regards,
Cris

[Cris]

Hi again Gordon,

As a follow-up I have pressed on with my own research and have copied below some information on protein research as it relates to asthma.

As mentioned there's plenty of exciting research into what causes inflammation (NB asthma is only one of the conditions involving inflammation); and plenty of research into the causes of allergies, but to my knowledge no-one is claiming an asthma cure.

As far as medication goes, I haven't found anything regarding a medication that is proven safe and effective in controlling proteins in relation to asthma ... which is not to say it doesn't exist ... just to say that I've been unable to find it.

The other possibility is that someone is working on a medication that reduces inflammation in a specific condition, eg; arthritis. Theoretically, this could have additional application for asthma, however; drug approvals are very specific in terms of what conditions the drugs are allowed to be prescribed for. That means the developer would still need to undertake all the usual regulatory procedures, i.e.; clinical trials etc to prove efficacy for asthma.

Let me know if you turn up anything new.

Regards,
Cris


Nature Medicine 10, 193 - 196 (2004)
Published online: 11 January 2004; | doi:10.1038/nm983
A MARCKS-related peptide blocks mucus hypersecretion in a mouse model of asthma

Mucus hypersecretion is a crucial feature of pulmonary diseases such as asthma, chronic bronchitis and cystic fibrosis. Despite much research, there is still no effective therapy for this condition. Recently, we showed that the myristoylated, alanine-rich C-kinase substrate (MARCKS) protein is required for mucus secretion by human bronchial epithelial cells in culture1. Having synthesized a peptide corresponding to the N-terminal domain of MARCKS, we now show that the intratracheal instillation of this peptide blocks mucus hypersecretion in a mouse model of asthma. A missense peptide with the same amino acid composition has no effect. Based on quantitative histochemical analysis of the mouse airways, the peptide seems to act by blocking mucus release from goblet cells, possibly by inhibiting the attachment of MARCKS to membranes of intracellular mucin granules. These results support a pivotal role for MARCKS protein, specifically its N-terminal region, in modulating this secretory process in mammalian airways. Intratracheal administration of this MARCKS-related peptide could therapeutically reduce mucus secretion in the airways of human patients with asthma, chronic bronchitis and cystic fibrosis.

http://www.nature.com/cgi-taf/DynaPage.taf?file=/nm/journal/v10/n2/abs/nm983.html


Protein protects infants By Miranda Wood, Health Reporter
April 4, 2004
The Sun-Herald

World-first research by Sydney doctors has found that premature babies have much lower levels of a natural protein that protects lungs from inflammation.

Doctors at Sydney's Royal Hospital for Women have monitored 165 newborns over the past two years to compare the levels of Clara cell secretory protein in premature and full-term babies.

The hospital's director of newborn care, Dr Kei Lui, said the research proved that the amount of protein in full-term babies was 20 times higher when compared with premature babies born at 24 weeks.

Dr Lui said scientists at the hospital's laboratory were examining how the protein helped babies.

"We know full-term babies tend to recover much quicker [from] any form of lung inflammation and premature babies tend not to," he said.

Clara cell secretory protein had anti-inflammatory agents and Dr Lui said babies produced a "surge" of the protein after birth.

"We need to define the role of it in the newborn lung and then we need to do much more to see whether it is beneficial," Dr Lui said.

http://www.smh.com.au/articles/2004/04/03/1080941723948.html?from=storyrhs&oneclick=true


Asthma linked to scar creating protein
Woolcock Institute of Medical Research
Research Overview

Discovery of what induces scar tissue in the lungs of asthma patients
Asthma is a major burden in Australia - affecting 25% of children and 10% of adults. Scar formation in the lungs of asthmatics is a major contributor to difficulty in breathing during an asthma attack. I have discovered what causes the scar tissue to be made. This finding could be the key to new drugs for the treatment of asthma.

' ... I also found that asthmatics are less able to stop the action of this scar creating protein which adds to the scar formation. This is due to a lack of a molecule, present in the non asthmatics, that controls the production of the scar tissue. ... '

http://www.asthmaresearch.org.au/researchers/research_projects/22.html

Researchers Identify A Protein That Could Banish Allergies
21.10.04

“We have to remember though that mice are not the same as humans,” cautions Dr Vanhaesebroeck. “Our work points towards a promising future for developing inhibitors for allergic conditions, but we are still a long way from developing a drug for human patients.” The LICR group’s research efforts are also focused on their findings that p110delta could also play a role in certain tumours, like leukemia, and that targeting the p110delta pathway may one day also be useful in the treatment of cancer.

http://www.sciencedaily.com/releases/2004/10/041021075734.htm


The Macquarie Bank Asthma Australia Research Alliance

In May 2001 Macquarie Bank, through the Macquarie Bank Foundation, entered into an alliance with Asthma Australia, providing approximately $1 million to fund a range of research activities over the next five years.

http://asthmaresearch.org.au/about/



Around the country, we hear and read regularly of many, many exciting 'breakthroughs' in cancer, heart disease, mental health, asthma, arthritis and the list goes on. In reality, of course, it still takes 7–10 years to translate a basic research discovery that gets scientists excited into a real treatment and benefit for patients.

NATIONAL PRESS CLUB ADDRESS
Humanity's heritage: The human genome and stem cells
21 July 2004

Professor John Shine
Secretary, Biological Sciences, Australian Academy of Science
Executive Director of the Garvan Institute of Medical Research, Sydney
http://www.science.org.au/proceedings/npc4.htm

[Cris]

Trial hopes for chronic lung blockage
18:00 AEST Wed Nov 10 2004


It’s a little known disease showing all the signs of old age, leaving sufferers breathless, coughing and fatigued. But left unchecked, chronic obstructive pulmonary disease from smoking, or COPD, can narrow airways and lead to a painful premature death.

The condition is set to become one of the nation’s biggest killers, and already affects two million Australians aged between 45 and 70. But a clinical trial being put together in Sydney will aim to test the effectiveness of new drugs to help fight the disease.

“Anything that's got a hill in it, going for a walk, up stairs … by the time I'm finished I can hardly breathe,” says sufferer George Littler.

Mr Littler, a smoker for many years, is part of the trial at Sydney’s Woolcock Institute for Medical Research. The focus is a new class of anti-inflammatory drugs called PDE4. When inhaled, the drug appears to block cells causing lung damage.

“From what we know [about it] so far it is quite promising, but the truth comes from doing the studies in our patients,” says Dr Paul Searle from the Woolcock Institute.

“It is an insidious disease. It starts with [patients] not being able to do things they used to be able to do.

“Finally, when they realise they are significantly debilitated they may need oxygen 24 hours a day.”

Patient Keith Woods was diagnosed with COPD eight years ago when he was 51.

“It’s worse than cancer I reckon,” he says. “There's nothing worse than not being able to breathe!”

Researchers say that unless COPD is diagnosed relatively early in its development, giving patients a chance to quit smoking and start medication, the disease leads to a steady, irreversible decline in lung function.

“There's people here 20-years older than me that have got a lot more capability as far as lung usage goes,” Mr Woods says. “I look at them and I'm jealous.”

Dr Searle says the Institute is looking to recruit over 100 patients who may have COPD for the trial, which is expected to last three to six months.

“You’ve got nothing to lose and everything to gain.”

http://news.ninemsn.com.au/article.aspx?id=21951

[Cris]

Hi Gordon,

Here are another two interesting articles along the same lines.

As discussed earlier, some areas of research are focused on identifying allergy markers and creating medications that would ideally stop the body from having an allergic reaction (relevant for a percentage of asthma sufferers),
HOWEVER;
there is other recent research that further hints elements present during an allergic reaction are there for a reason (as if we didn't already suspect this - reminds me of tonsilectomies).

For example; a recent Stanford study on mast cells (mast cells are immune cells implicated in the wheezing of asthma and other nasties) discovered a possible hidden value of mast cells:

1) ' ... survival during sepsis was greatly improved in the mice with mast cells ... '
2) ' ... mice without mast cells died ... '.

So, even though mast cells can behave badly, remove/inactivate the mast cells and you could adversely tamper with the body's own natural defence system - it's immune reponse, i.e.; the body's inherent ability to fight and win against serious infections.

Food for thought,
Cris


Nov 16, 2004

Asthma's wheezy feeling

By Shelley Widhalm
THE WASHINGTON TIMES

Call it a family affair — Grace and Tom McCabe and their 12-year-old son Danny have allergies and Mr. McCabe and Danny have asthma.
"My asthma hasn't been so bad," says Mr. McCabe of Alexandria, who, like his son, is allergic to cats, dogs, mold, dust, grass and pollen, but, unlike him, is not taking allergy shots. "Long term, I want to do it, especially if we ever want to have any pets."
Danny has been taking allergy shots for more than three years to remove one of his asthma triggers and become less reliant on his inhaler.
"His breathing is much easier. When he takes a breathing test, you can tell his lung capacity is much greater now," says his mother.
Danny recalls his first asthma attack four years ago.
"I just couldn't breathe. My lungs could barely take up any air at all," he says. "It feels like you're going to explode."
More than 70 percent of the 20.3 million Americans reporting having asthma also have allergies, according to statistics from the American Academy of Allergy, Asthma & Immunology (AAAAI), a Milwaukee professional medical organization that promotes education and research.
"Asthma oftentimes is triggered by allergies," says Dr. Martha White, an AAAAI member and an allergist and immunologist for the Institute for Asthma & Allergy, a private practice and research center in Wheaton.
Asthma is present in one out of 20 people and allergies in one out of four to five people, Dr. White says. Those with allergies have a one-in-four chance of developing asthma, both of which are genetic, she says.
A team of American and Australian researchers found a gene linked with asthma, a step in understanding the genetic causes of the disease, after conducting a four-year-study reported last month in the New England Journal of Medicine.
The researchers discovered that a gene in the prostanoid pathway — the inflammatory biochemical pathway considered to be important in asthma — might be associated with the inflammation seen in the disorder, says Dr. Scott Weiss, pulmonary specialist and professor of medicine at Harvard Medical School.
Understanding the gene, along with other genes, will lead to a cure for the disease and help doctors predict the course it will take in individual patients and the best medications and treatments to use for them, Dr. Weiss says.
"Prediction isn't a cure, but prediction can be very helpful to patients," he says.
Asthma can be brought on by allergies, respiratory infections and exposure to irritants, such as air pollution. The disease is more prevalent in Western, urbanized countries, possibly, at least in the United States, from a decrease in air quality, spending more time indoors where dust and other allergens are located, and a tendency to be "too antiseptic," says Cynthia Liss, a registered nurse with a master's of science in nursing and a clinical instructor for the College of Nursing and Health Science at George Mason University.
"Asthma is becoming more and more well understood as an allergic disease, though there are cases of non-allergy asthma," says Mo Mayrides, director of public policy for the Asthma & Allergy Foundation of America (AAFA), a nonprofit patient organization based in Washington, dedicated to education, advocacy and research.
In the case of allergies, the body produces immunoglobin E (IgE), an antibody, against a specific allergen so that the next time the allergen is encountered, the allergen binds to the IgE molecule and with enough binding, triggers an allergic reaction, Dr. White says. Allergy shots can help, she says, by changing the body's immune system, so that the body stops producing IgE.
Asthma is a chronic lung disease in which the airways, the tubes that carry air in and out of the lungs, are blocked during an attack. Symptoms of wheezing, shortness of breath, coughing and chest tightness can result.
The muscles around the airways tighten, causing the airway openings to narrow. The inside walls of the airways become inflamed or swollen and can be sensitive to allergens — animal dander, dust mites, pollen and mold — and irritants — cigarette smoke, cold air, strong odors, stress and strong emotions, according to the National Heart, Lung and Blood Institute (NHLBI) of the National Institutes of Health, in Washington. The inflammation, along with extra production of mucus, causes the airway openings to narrow further.
"It's a very complex disease. However, it's one that responds in a very gratifying way to the proper treatment," says Dr. Harold Nelson, member of the NHLBI asthma expert panel and professor of medicine at the National Jewish Medical Research Center, a hospital and research facility located in Denver.
Two classes of medication are used to treat and control asthma, a disease that cannot be cured, according to NHLBI.
Controller or preventive medications, such as inhaled corticosteroids and leukotriene modifiers that are taken daily, keep the airways open by acting on the inflammation response. Rescue medications, or short-acting bronchodilators, are used as needed to help relax the muscles around the airways.
"The medications block one or another part of the inflammation process," says Dr. Norman H. Edelman, consultant for scientific affairs to the American Lung Association (ALA), based in New York. "Research is focusing on the development of new medications, for the most part focusing on various parts of the body's anti-inflammatory process."


The latest asthma medication, Xolair, a brand of anti-IgE that is injected bimonthly when other medications fail to work, neutralizes or blocks the IgE by combining with it to make it ineffective. The FDA approved the medication in 2003 for moderate to severe asthmatics with a high level of IgE.
"The best treatments are the inhaled steroids. They have been shown to decrease symptoms of asthma [and] to improve lung function or lung capacity," says Dr. Depak Soni, chief of pulmonary medicine at Inova Fair Oaks Hospital.
Dr. Soni emphasizes the importance of taking prescribed medications, remarking that some patients will stop taking them when they start feeling better. The symptoms, at that point, likely will return, he says.
"Early treatment is probably key. The longer you wait to treat symptoms, the more difficult it becomes," Ms. Liss says. "Asthma can become progressively worse."Thomas recommends asthmatics take short-term medications before exercising since exercise also can be a trigger, along with keeping hydrated to prevent mucus buildup and spending additional time warming up and cooling down.
"I respect the disease process," says Ms. Thomas, a lifelong asthmatic.

http://washingtontimes.com/metro/20041115-112206-8259r.htm



Source: Stanford University Medical Center

Date: 2004-11-16
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Stanford Study Reveals That Cells Linked To Asthma And Eczema Also Help Cure Deadly Illness In Mice
STANFORD, Calif. - Mast cells are immune cells known mostly for their unwanted effects: they cause the wheezing of asthma, the itching of eczema, the sneezing and runny nose of hay fever and, in extreme cases, the life-threatening shock of anaphylaxis. But researchers at the Stanford University School of Medicine have found that these cells also have some very beneficial effects.

Stephen Galli, MD, the Mary Hewitt Loveless, MD, Professor and chair of pathology, and his colleagues have shown for the first time that mast cells can provide protection from a potentially deadly condition known as sepsis by destroying a molecule that contributes to the pathology and death associated with this bacterial infection. Their results are to be published in the Nov. 14 advance online edition of Nature. The first authors, Marcus Maurer, MD, and Jochen Wedemeyer, MD, were postdoctoral fellows in Galli's laboratory during the study.

"What we have uncovered in this study is a new role for the mast cell, which is to limit the amount of damage caused by endothelin-1, a molecule that is produced in high amounts by the body during severe sepsis, as well as in association with other disorders," said Galli.

Sepsis is a severe illness caused by overwhelming infection of toxin-producing bacteria in the bloodstream. The effects of sepsis in humans include a high fever, hyperventilation and diarrhea and can be life threatening, especially in patients with other medical problems.

During some infections, endothelin-1 levels can go very high, causing extreme dilation of the veins and contributing to some of the severe symptoms of sepsis. At the start of the study, the scientists already knew that, in cell culture, mast cells are activated by endothelin-1. In turn, the mast cells also can produce endothelin-1 and break it down. "However, it was not possible to guess what the net effect of the mast cells on the endothelin system would be, because mast cells can both degrade it and produce it," said Galli.

To see the mast cells in action rather than in a culture dish, senior research scientist Mindy Tsai, DMSc, helped produce genetically engineered mast cells that could or could not respond normally to endothelin-1. The researchers could then selectively transplant these mast cells to mice that lacked the cells and thus see how it affected the ability to respond to endothelin-1 or bacterial infection.

Most of the mice without mast cells died as a result of bacterial infection. But survival during sepsis was greatly improved in the mice with mast cells that could respond normally to endothelin-1. The scientists found that endothelin-1 can activate mast cells in the mice and, once triggered, the cells produced another protein that breaks down endothelin-1, reducing its toxic effects. In other words, said Galli, the mast cells help to restore normal physiological balance in the mice with high levels of endothelin-1.

High levels of endothelin-1 have been reported in a number of human diseases, such as high blood pressure, pulmonary hypertension, asthma, congestive heart failure, renal failure and gastric ulcers, said Galli. Moreover, mast cells have been implicated in many of the same disorders.

"Although we have studied a bacterial infection as a kind of first test case, we hope to be able to develop models that would allow us to study this phenomenon in other diseases as well," he said. "We are too early in this work to see clearly what the therapeutic potential will be."

Other scientists have considered the possibility of eliminating mast cells as a possible treatment for diseases such as asthma. However, Galli said his team's results offer an example of a beneficial function that would be lost if those cells were eliminated.

"It's reassuring that evolution has produced cells that under some circumstances have significant benefit, even though when they are activated inappropriately, such as in asthma, they produce harm," Galli said.

Interestingly, he said, a component of a particular snake venom, that of the Israeli mole viper, contains a compound similar to endothelin-1. Animals bitten by the snake develop some effects that are similar to those observed in sepsis. It is possible that mast cells also counteract this venom component, breaking it down and reducing the toxicity of the protein. Galli's group is looking at this now.

Other Stanford researchers who contributed to this work are Martin Metz, Adrian Piliponsky and Davavani Chatterjea. The National Institutes of Health funded the study.

###

Stanford University Medical Center integrates research, medical education and patient care at its three institutions - Stanford University School of Medicine, Stanford Hospital & Clinics and Lucile Packard Children's Hospital at Stanford. For more information, please visit the Web site of the medical center's Office of Communication & Public Affairs at http://mednews.stanford.edu.

http://www.sciencedaily.com/releases/2004/11/041115001038.htm

[Cris]

Change of Director's Interest Notice

Name of Director
Ian Keith Macpherson (Director & Chairman)

Date of Change
23.11.04

Number Acquired
500,000 shares

Value/Consideration
3.3 cents per share ($16,500)

Nature of Change
Acquisition of shares on market

No of Securities Held After Change
10,642,521 shares
1,799,892 Options (VSGO)

Refer to ASX notice 25.11.04 to clarify/confirm accuracy and obtain further details

[Cris]

Change of Director's Interest Notice

Name of Director
Ian Keith Macpherson (Director & Chairman)

Date of Change
25.11.04

Number Acquired
500,000 shares

Value/Consideration
3.0022 cents per share ($15,011)

Nature of Change
Acquisition of shares on market

No of Securities Held After Change
11,142,521 shares
1,799,892 Options (VSGO)

Refer to ASX notice 26.11.04 to clarify/confirm accuracy and obtain further details

[Cris]

ASTHMA MEDICATION & DELIVERY DEVICE REVIEW
in relation to YOUNG CHILDREN and
MARKET POTENTIAL OF FUNHALER ASTHMA SPACER DEVICE (by VISIOMED)

BRIEF OVERVIEW OF NON-INHALED ASTHMA MEDICATIONS
in relation to YOUNG CHILDREN

Monoclonal Antibodies

IgE binds to allergens and triggers the release of substances from mast cells that can cause inflammation. When IgE binds to mast cells, a cascade of allergic reaction can begin. Xolair prevents these antibodies from sending messages to the mast cells so those cells never get the signal to release the chemicals that cause the reaction.

Drugs in the class of Monoclonal Antibodies:

Xolair (Omalizumab) is indicated for adults and adolescents (12 years of age and above) with moderate to severe persistent asthma who have a positive skin test or in vitro reactivity to a perennial aeroallergen and whose symptoms are inadequately controlled with inhaled corticosteroids. Xolair has been shown to decrease the incidence of asthma exacerbations in these patients. Safety and efficacy have not been established in other allergic conditions.
- blocks immunoglobulin E (IgE), an underlying cause of allergic asthma symptoms
- recommended for those who continue to have asthma symptoms even though they are taking inhaled steroids (but Xolair is not a rescue medication)
- clinical studies - 0.5% of patients developed cancer, 0.2% on placebo developed cancer (time frame - less than 1 year) for patients 12 years of age and above http://www.xolair.com/index.jsp http://www.xolair.com/patient/prescribing_info.jsp http://www.xolair.com/index.jsp
by INJECTION



EXAMPLE - MONOCLONAL ANTIBODIES by INJECTION
from Tanox website
Xolaire (Tanox) - subcutaneous use (injection)
Prescribing Info - Pediatric Use
Safety and effectiveness in pediatric patients below the age of 12 have not been established.
http://www.gene.com/gene/common/inc/pi/xolair.jsp#contraindications

Leukotriene Modifiers

Leukotriene modifiers are the newest class of drugs for the treatment of asthma. Leukotrienes are chemical compounds that are released during the inflammatory process. They are chemical messengers that help protect the body against attacks by invaders. However, when they are a part of an allergic response, leukotrienes cause airway obstruction through smooth muscle contraction, mucous production, and swelling of the airways. Leukotriene modifiers block the action or production of leukotrienes, and subsequently inhibit the inflammatory process. Two types of leukotreine - based medications have been developed: leukotriene inhibitors that interfere with the actual synthesis of leukotrienes, and leukotriene antagonists that block the action of leukotrienes by interfering with receptor sites.

Leukotriene modifiers are good for patients who don't respond well to other anti-inflammatory therapies. They are also finding increasing favor with physicians who treat asthma in children. They are not used to treat acute asthmatic attacks and are available only in tablet form.

Drugs in the class of Leukotriene Modifiers:

Montelukast - MONTELUKAST (Singulair®) helps to reduce asthma symptoms (coughing, wheezing, shortness of breath, or chest tightness) and control your asthma. It does not provide instant relief and cannot be used to treat a sudden asthma attack. It works only when used on a regular basis to help reduce inflammation and prevent asthma attacks. Montelukast is effective in adults and children. This drug is also helpful in improving seasonal allergies, like hay fever. Generic montelukast tablets or chewable tablets are not yet available. Montelukast chewable tablets are normally prescribed in children 2 years of age or older.
TABLET BY MOUTH

ZAFIRLUKAST (Accolate®) helps to reduce asthma symptoms (coughing, wheezing, shortness of breath, or chest tightness) and control your asthma. It does not provide instant relief and cannot be used to treat a sudden asthma attack. It works only when used on a regular basis to help reduce inflammation and prevent asthma attacks. Zafirlukast is effective in adults and older children. Generic zafirlukast tablets are not yet available. Take zafirlukast by mouth (i.e., swallowed) on an empty stomach. Contact your pediatrician or health care professional regarding the use of this medicine in children under the age of 5 years old. Special care may be needed.
TABLET BY MOUTH


EXAMPLE - MONTELUKAST by TABLET
SINGULAIR is a prescription medicine approved to help control asthma in adults and children as young as 12 months and to help relieve the symptoms of seasonal allergies in adults and children as young as 2 years.
SINGULAIR should NOT be used for the fast relief of acute asthma attacks or to prevent or treat asthma made worse by exercise. You should still have rescue medication available and continue to take your other asthma medications unless your doctor tells you to stop.


EXAMPLE - ZAFIRLUKAST by TABLET
ACCOLATE is a nonsteroidal tablet for the prevention and continuous treatment of asthma in adults and children 5 years of age and older, available only by prescription. ACCOLATE IS NOT FOR USE IN THE REVERSAL OF ACUTE ASTHMA ATTACKS. Common side effects for ACCOLATE included headache, infection and nausea in adults and headache and abdominal pain in children.

Oral Beta-2 Agonists

Beta-2 agonists work in a manner similar to adrenaline, opening airways and easing breathing. They work by binding with, and thus stimulating, beta-2 receptors that line the cell walls of the lungs and the bronchioles. The effect of the stimulation is to relax smooth muscles and widen the airways.

Possible side effects to the Beta-2 agonists include shakiness, rapid heartbeat, and upset stomach.

Oral beta2-agonists works in a similar fashion to inhaled beta2-agonists, but they may take longer to work than the inhaled formulation. Oral beta-agonists must be absorbed in the digestive tract and travel through the circulatory system before they begin working in the lungs, whereas the inhaled formulations go straight to the lungs.

Drugs in the class Oral Beta-2 Agonists:

ALBUTEROL (Proventil®, Ventolin®) is a bronchodilator, a medicine that opens up your air passages and makes you breathe easier. It is a medicine for patients with various lung problems such as asthma and chronic bronchitis. Generic albuterol oral syrup is available.Take albuterol oral syrup by mouth. Follow the directions on the prescription label. Contact your pediatrician or health care professional regarding the use of this medicine in children. Special care may be needed.
SYRUP BY MOUTH

ALBUTEROL (Proventil®, Ventolin®) is a bronchodilator, a medicine that opens up your air passages and makes you breathe easier. It is a medicine for patients with various lung problems such as asthma or chronic bronchitis. Generic albuterol tablets and extended-release tablets are available. Contact your pediatrician or health care professional regarding the use of this medicine in children. Special care may be needed.
TABLET BY MOUTH

METAPROTERENOL (Alupent®) can open up air passages and make breathing easier for people with various lung problems such as asthma. Generic metaproterenol tablets are available.Contact your pediatrician or health care professional regarding the use of this medicine in children. Special care may be needed.
TABLET BY MOUTH

TERBUTALINE (Brethine®) is a bronchodilator, a medicine that opens up your air passages and makes breathing easier. It is a medicine for people with lung problems such as severe asthma and bronchospasm. Generic terbutaline tablets are available. Contact your pediatrician or health care professional regarding the use of this medicine in children. Special care may be needed.
TABLET BY MOUTH


EXAMPLE - ALBUTEROL by SYRUP
Proventil Syrup
The usual starting dose for children 6 to 12 years of age is 1 teaspoonful 3 to 4 times a day. The dosage should not exceed 3 teaspoonfuls 4 times a day. For children 2 to 6 years of age, the starting dose is 0.1 milligram per 2.2 pounds of body weight, to a maximum of 4 milligrams, 3 times a day.

Special Warnings: The drug has been known to cause life-threatening bronchial spasms, especially with the first dose from a new canister or vial.

There have also been rare reports of skin reddening and peeling in children taking albuterol syrup.
EXAMPLE OF ALBUTEROL TABLETS
Volmax (albuterol sulfate) Extended-Release Tablets
Volmax®
Extended-Release Tablets are indicated for the relief of bronchospasm in adults and children 6 years of age and older with reversible obstructive airway disease.


EXAMPLE - METAPROTERENOL by TABLET
The usual dose for children between the ages of 4 and 12 is 10 mg (1/2 tablet) 3 times a day. For children over 12 years old the usual dose is 20 mg (1 tablet ) 3 times a day.
People taking Alupent® tablets orally may experience a greater incidence of unwanted effects as compared to those taking inhaled Alupent®. http://www.lung.ca/drugs/pages/16.html


EXAMPLE - TERBUTALINE by TABLET
This medication is not recommended for use in children below 12 years of age.
EXAMPLE - TERBUTALINE by INJECTION
Brethine (injection)
Indications and Usage
Brethine is indicated for the prevention and reversal of bronchospasm in patients 12 years of age and older with asthma and reversible bronchospasm associated with bronchitis and emphysema.

BRIEF OVERVIEW OF INHALED ASTHMA MEDICATIONS & DELIVERY DEVICES in relation to YOUNG CHILDREN

Dry Powder Inhalers
Because DPIs rely on the force of a person's inhalation in order to properly deliver the medication into the lungs, DPIs are not recommended for children under five, people with severe asthma or those suffering a severe attack.

Nebulizers
These breathing treatments usually take about 10-15 minutes and are given several times a day.

Metered Dose Inhalers (MDI) and Spacers
The MDI is a small aerosol canister in a plastic holder which delivers a burst of medication directly to the lungs. The preferred method of using an MDI is by using it with a device called a "spacer." A spacer is a tube that attaches to the inhaler. It holds the medication until you can breathe it in. This makes using the MDI easier and helps deposit the medication into the lungs better. Spacers also come with masks to be used by small children or anyone else that may not be able to breathe in correctly through a standard spacer. Medications delivered by MDI include Aerobid, Alupent, Atrovent, Azmacort, Combivent, Intal, Qvar, Serevent, Tilade and Vanceril.

MARKET POTENTIAL OF FUNHALER ASTHMA SPACER DEVICE (by VISIOMED)

There are numerous proven, widely-accepted, and widely-used asthma medications delivered by inhalation (including generic versions).

Inhaled medications are reliant on efficient inhalation methods to ensure compliance with medication delivery directly to the lungs as intended. Inefficient inhalation (not drawing a deep enough breath) results in inefficient medication. For this reason nebulizers and spacers are recommended as an aid to medicating asthmatic children.

A nebulizer is well-suited to aiding medication in children too young to manage a spacer either alone or with carer assistance. A nebulizer is a passive device that does not in itself teach children to inhale deeply, therefore; there remains a very real risk of inefficient inhalation. In addition, this time-consuming delivery method (about 10-15 minutes several times a day) is highly likely to become troublesome, inconvenient, and encounter rising levels of user-resistance.

A spacer is well-suited and highly recommended to aid medication in children as soon as they are able to manage its use; either alone or with carer assistance. Whilst standard (unembellished) spacers may be less troublesome and more convenient than a nebulizer, there is still a risk children will not inhale sufficient medication deeply into the lungs.

The Funhaler, a children's asthma spacer device was developed specifically to address the above shortcomings and ensure efficient compliance with medication delivery. Effectiveness of the Funhaler has been proven in clinical trials:
1) The Funhaler improved the medication technique of children by 60%.
2) 94% of parents preferred the Funhaler to a conventional spacer device.

Asthma is in the news daily and often linked to successful research and drug development news. Whilst all advances are welcome, from this writer's research and perspective, developments appearing in the news are early results requiring further research or further trials and most are years from successful market realisation, therefore; in this writer's opinion the Funhaler is best-suited to aid asthma medication delivery in young children as soon as they are able to manage its use; either individually or with carer assistance.

This means the world-wide market potential for the Funhaler from early in 2005 (in this writer's opinion and worth only what you paid for it here), is clearly substantial and protected (by patents).

NB Patents secured to protect the Funhaler may provide a basis for additional applications and markets.

[sam76]

Hi Cris, Haven't heard much from VSG regarding the Australian launch of the funhaler. It's now almost April. Any thoughts?

Regards,

Sam.

[sam76]

To all you VSG believers,
The wait is almost over....
The first shipment of Funhalers is due in Chemists around the middle of April. (next week)
The price is approx $50.00
There have been a lot of queries regarding the release (esp. since the new inventors).
Maybe time to top up your holdings .....
Regards,
Sam

[sam76]

Nice gains today.
good article in Sunday's Sun-Herald
hopefully improved upon with the release of the funhaler next week.

[Porper]

Nice gains today.
good article in Sunday's Sun-Herald
hopefully improved upon with the release of the funhaler next week.

Don't know what happened to my last post, obviously can't control my keyboard :biglaugh:

Anyway, I have been watching VSG for a few months now and my problem with it is the lack of volume, extremely thin most days, plus even after a run in price it always comes back to sit around 3c mark. If the Funhaler gets good orders and there is a rise in price on good volume I may jump in but certainly not yet, just too difficult to get out if you needed to.Excellent potential though, and a director has steadily been accumulating the past few months as well.Definately on the watchlist.

[sam76]

Volume still thin, but over the last week the directors have been accumulating. Must be some sort of positive announcement coming soon (I hope!) Seems to be cheap at the moment...

thoughts?

Sam.

[Porper]

Sam, My thoughts are that VSG has broken through the 3c support that they had for so long.Not good, volume incredibly thin still, and the only director buying I saw was for a measly $2000 odd dollars, although I may have missed some as I haven't really being following visiomed for some time.Still on my watchlist, but getting very near being removed.:bad:

[sam76]

hmmm...

my gut tells me the same...

[Knobby22]

Ther have been different covers for the units with dinos etc.
I know this is a lot more high tech but I wonder if parents will buy it.
My child has asthma but I can't see myself spendin $20 buying one.
I think the real idea of this stuff is to get enogh profit to allow them to follow more promising medical paths.

Did anyone follow TSR, they brought out an electronic whistle and a device to practise resucutation, good products but they couldn't make enough to generate real profits and the company has had to reorganise itself.

This may be a winner but I wouldn't be confident.

[sam76]

incidentally, Director puchases as follows:

500,000 @ 2.5 = $12,500.00
200,000 @ 2.6 = $ 5,200.00
565,000 @ 2.5 = $14,125.00

That's $31,825 they've put into it over the last week.

I guess it's either undervalued or they're trying to instil some sort of investor confidence.

This little investor hopes it's the former!

Have a great weekend!

Sam

[sam76]

VSG have already contracted 20,000 units per year to Cottman.

they have stated they need 150,000 units sold to break even.

Australia represents just 1% of the asthmatic market.

I've recently returned from living in Japan for the last 2.5 years where VSG have quoted as being very receptive to the funhaler.

Trust me, the Japanese will spend whatever it takes when it comes to their children. And they will def. view the funhaler as "kawaii" (cute). It has the potential to become a fashion item over there (no joke!)

I'm hoping that this company will come through with the goods. They seem to have trimmed the fat of admin costs and exposure so far has been positive.

Let's not forget the States and Europe.

It really is 50/50 at this stage...

Cheers,

Sam

[Porper]

Sam, Directors spending $30,00 is maybe something to be hopeful for, I didn't realise that, but like I said I haven't really been following them.

The lack of volume is the thing that does it for me, or lack of to be more precise.I hope they do succeed, would be a nice little story.

[Aussiejeff]

Hmmmm.... you can also often see Directors purchasing shares in small cap companies a week or so ahead of *potentially positive* announcements. Not always, but often.

Personal "insider knowledge" of the content of a pending announcement that might boost a companies share price is ALWAYS going to be a part of the game. The government do-gooder regulators might like to assure us that "insider trading" is all but non-existent thanks to their diligence, but really, who are they trying to kid???

Let's face it, if you are the Director of a small cap company (that is often your "baby"), you surely have the right to invest in it and make some potential dough from time to time yourself?

Obviously, you don't intend to make losing trades just before potentially *bad* announcements either, am I right?

So, either (a) a potentially positive announcement is in the offing or (b) the directors are as others suggest 'propping' the stock in the short term.

Either way, barring a significant general market correction southwards, it *shouldn't* slump in the short term ....

It is on my watchlist ATM...

Cheers,

AJ

[sam76]

Trading halt this morning.

This company could do with some good news.

Maybe has something to do with the portable eye imaging device that has been undergoing clinical testing recently, or another funhaler announcement.

I hold.

[Porper]

Trading halt this morning.

This company could do with some good news.

Maybe has something to do with the portable eye imaging device that has been undergoing clinical testing recently, or another funhaler announcement.

I hold.


I have a feeling in my bones the news will not be good.I may be wrong of course.;)

Just to clarify, I have no information at all, just going by the chart.

If anybody is holding, hope I am wrong.:)

[sam76]

I noticed the drop yesterday as well.

It could have something to do with that guy with the portable retina thingy winning the grand final of the New Invetors last night.

I don't think it'll be capital raising.

More likely a delay in manufacturing of the funhaler.

Or then again it could be a million unit contract announcement! :D

[sam76]

well I was wrong....

It's a %^#%$^& capital raising! :banghead:

http://www.tradingroom.com.au/news_research/index.jsp?section=news_search&page=http%3A%2F%2Fnewsstore.com.au%2Fapps%2FviewDo cument.ac%3Fsy%3Dtpl_nws%26ss%3DTPL%26docID%3DGCA0 0572325VSG

[sam76]

time to raise this one from the dead.

Found this at another site.

http://www.visiomed.com.au/media/eG%20Capital%20Report%20February%202006.pdf

values VSG at 8cps

four cents for funhaler and another four cents for the patents and technology.


Chart looks dodgy, but after recent successful capital raising and US and EU distributor ann. due soon coupled with massively reduced manufacuring costs, this company is at the beginning of a turnaround.

DYOR

Sam

whad'ya think?

[sam76]

Nice rise at the end of the day today. up almost %15.

I't hasn't closed at .024 for a while now

Volume was good for VSG (about 1.6 mill), but still not enough.

maybe US/Uk dirtribution rights announced over the next couple of days?

I know this one will go like a rocket as It's the first time I didn't pick it for the tipping comp for months! :)

I still believe in the long term vitality of this stock - but management need to keep us small fry informed a little better.

:2twocents

[sam76]

yep - good news imminent.
up another 5% this morning on volume.
watchers of this one know that it only runs when there's news.
(usually bad)

plus there's the whole tipping thing :rolleyes:

fingers crossed.

[sam76]

the doors have opened to Europe!

opened at 2.6

this goes to show everyone - do the exact opposite of me and you will make money! :D

[pacer]

Has hit 2.5 today again so coud be a good buy opportunity after the hype last week, may be word hasn't got out to speccie traders. Will hit it a bit myself.
Expect some good results soon enough, especialy if they announce production and distribution plans.

good luck to all who hold

[surelle]

it's dropped back to 2.4c...don't get it, this one has potential and is very slow to show movement..

I suppose patience for this one....

[sam76]

Wow! Another poster on the VSG board!

;)

[surelle]

have been watching for some time,

new blood hey....be gentle

[sam76]

I think the market is waiting for some solid announcements from this co.

VSG has a history of not being forthright with announcements.

Directors have been slow to inform.

[surelle]

they have a great product with heaps of potential and now that they have their CE approval sales should increase...and hopefully the sp :)

[sam76]

don't get me wrong - I'm a BIG believer in this stock.

but too many people have been burnt by the lack of disclosure.

I agree that now is the time to be stocking up.

Minimal downside and MAXIMUM upside ie: all the issues (manufacturing etc..) have been ironed out.

:D

[surelle]

lets then keep all fingers and toes crossed

[sam76]

and anything else that's lying around :p:

[surelle]

go figure...it's down to 2.2c - a good opportunity to get in, but where's the confidence - it's a great product, maybe the company isn't marketing it well....

[sam76]

in spite of the lack of communication to the market - I going to top up my holding tomorrow (not by much - just rounding up)

[sam76]

LOL Well as sonn as I start griping about lack of communication to the market, VSG release an update.

p.s. gapped above my my order..

[surelle]

that'd be right - that news "should" kickstart their sales campaign so hopefully, we will see some encouraging movement soon....

[regatwests]

VSG - Acceleration of Overseas Expansion, Mr William Dolphin, CEO
VISIOMED GROUP LIMITED (VSG)
Scheduled start: Thursday, 11 May 2006 11:30 AM (New South Wales)
Please note: live events may not start precisely on schedule. Please stay tuned

http://www.brr.com.au/


could be interesting.

[sam76]

Hey Surelle,

Did you notice the volume on VSG today?

[surelle]

yes and there was no ann either, this has been steadily going down over the last 4 weeks, but I reckon, one of the tipsters has probably suggested it at a cheap buy, I hope something good comes out of it though :banghead:

[sam76]

you and me both, my dear.

I've been very tempted to sell over the last couple of days...

I also have been :banghead: over this one.

we are well overdue for some positive action.

Did we ever hear more about the company VSG took over for the roll out of the funhaler?

[surelle]

you and me both, my dear.

I've been very tempted to sell over the last couple of days...

I also have been :banghead: over this one.

we are well overdue for some positive action.

Did we ever hear more about the company VSG took over for the roll out of the funhaler?


i've also been considering selling and cutting my losses ( bought in at .026) and seemed to have great ann, but lo and behold.....it went the other direction, unsure why, coz it has the potential of big sales...
the new company purchase was announced, but that was it, no further news.

will be hanging in for a little while longer, as I suspect this big volume today has come from a tip from one of the tipsters as a cheap buy, maybe they know something we don't

although the news was only an undertaking to purchase, maybe the purchase is getting closer, who knows :banghead:

[surelle]

have a look at the presentation on their website, released today www.visiomed.com.au

[sam76]

hmmmm...
same old, same old I thought.
they've give themselves 2 years to sell 1,000,000 funhalers.
I was expecting (and it seems the market as well) a bit more from VSG

[surelle]

hmmmm...
same old, same old I thought.
they've give themselves 2 years to sell 1,000,000 funhalers.
I was expecting (and it seems the market as well) a bit more from VSG

I agree, no real fireworks happening here, although the potential is there....
they've signed licence agreements for Europe, it should ?? start happening earlier than 2 years one would hope

[surelle]

finally a bit of movement today, due to the company listing on the Frankfurt exchange, now maybe things will start moving ....

[sam76]

finally a bit of movement today, due to the company listing on the Frankfurt exchange, now maybe things will start moving ....

including our bank balances :D

[surelle]

including our bank balances :D

oh, we live in hope sam, we live in hope :D

[sam76]

In my opinion this report is 1000% better then the one released last week.

To quote Big Kev "I'm excited"!!!!


Visiomed Group Ltd

ASX Code : VSG
Shares on Issue : 296 million Major Shareholders
Market Capitalisation (@ 2c) - $A6mill (~$3.5mill euro) Directors 15.5%
Cash at Bank: $A.95 million (no debt) Top 40 holders 49.4%


Visiomed develops and commercializes innovative technologies for improved medication delivery and adherence, helping people live normal, healthy and active lives. During the past 12 months the company has significantly repositioned itself focusing on the large and growing
US$28 billion worldwide respiratory diseases market.
The worldwide market for spacers and inhaled drug delivery devices is in excess of US$6B.

Visiomed's initial product, the Funhaler asthma spacer, has captured approximately 6% of Australian market within first 6 months of release; assuming proposed acquisition completed, the company anticipates similar uptake can be achieved in US, EU and Japan markets yielding earnings of estimated US$4 million within 36 months
The Company's product has been demonstrated to increase compliance to prescription medication which could increase revenues to pharmaceutical companies by greater than US$1B annually. Hence successful introduction of product makes Visiomed a likely takeover
target.

The only incentive "spacer" device designed specifically for children. Assists in the delivery of inhaled medication for respiratory diseases (such as asthma). Clinically demonstrated to improve compliance to prescribed medication by 38% and successful medication of children by 60%.
Spacers improve drug delivery, reduce the side effects of medications and are recommended by all major medical organizations. Spacer market forecast to more than triple over the next 5 years.
Market for asthma spacers and similar products worth US$2.8 billion in Australia, USA, the EU and Japan alone. Asthma is the most common chronic childhood disease, affecting 12 - 16% of all children.
Total market for respiratory disease medication delivery devices is US$6.2 billion, representing 485 million affected people. This excludes other new opportunities for inhaled medication, including diabetes, cardiovascular hypertension and other anti-virals and anti-biotics (e.g., HIV, birdflu, herpes, etc.) which represents another US$7.4
billion market.
Within 6 months of release the Funhaler has captured approximately 6% of the Australian spacer market. The company believes similar uptake rates are achievable in the US, European and Japanese markets. Based on published asthma rates and spacer sales, it is estimated that the market for spacers is less than 20% saturated.


Visiomed is undertaking an acquisition of a major supplier of spacers in Australia which has in place a licensing agreement with a leading US-based devices company in the areas of respiratory and sleep apnea. The strategic partnership will give the company accelerated access to worldwide markets. The acquisition will see Visiomed profitable in 2006 / 07 from existing business alone and the dominant player in the Australian spacer market.
The Company has been granted all regulatory approvals in the US (FDA 510), Australia
(TGA) and Europe (CE mark) hence is cleared to commence marketing and sales in these major markets.
Visiomed holds key patents for inhaled drug delivery and improved compliance. Patented
and proprietary technology includes low flow rate valves for the delivery of medication and the incorporation of incentive and feedback mechanisms to drug delivery devices.
Company's core patented technologies applicable to any inhaled drug delivery device. Compliance is key issue in healthcare: less than 45% of patients adhere to their prescribed medication plan and less than approximately 40% of prescribed asthma medication is actually purchased. Improved compliance directly translates to improved healthcare and increased pharmaceutical revenues. The Company's products target improved compliance; the Funhaler has been clinically proven to increase compliance by 38% hence the company is a likely takeover target.
Obvious synergies with licensing partner, including distribution channels, product development and corporate partnership. Distribution discussions underway in Europe and the US already.
Excellent international growth prospects from rapidly growing drug delivery device market.

Large percent of major drugs now off-patent hence generic pharmaceutical companies need differentiation and large pharmaceutical companies need to extend life of patented drugs - hence reformulations for new & improved drug delivery devices with inhaled
delivery the pathway of choice for insulin, anti-virals, antibiotics, hypertensives, etc.
High margin product. Currently completing manufacturing upgrade which will yield high volume, low cost production with gross margins in excess of 70%. Further cost savings realizable in manufacturing, marketing and distribution with acquisition.

Excellent management with strong track record
William F. Dolphin, Ph.D., CEO. Over 20 years of senior executive experience in the med-tech and technology industries. Dr. Dolphin was previously CEO of a U.S. medical technology company which achieved 5 year growth over 6000% with 20% earnings, has been the recipient of prestigious Product Innovation Award from Frost & Sullivan, and was twice recipient of the US National Institutes of Health Research Service Award. Dr Dolphin joined the Company in April 2005.


Summary
High margin product targeting large and growing respiratory disease market (greater than US$6B)
Addresses major issue in healthcare, i.e. compliance. Improved compliance directly translates to
increased revenues to pharmaceutical companies; hence Visiomed is likely takeover target.
Company is significantly undervalued; on cusp of major worldwide launch with patents and all regulatory approvals (US 510K, CE mark) in place.
Experienced management with proven track record.

[surelle]

I was a fan of Big Kev too :)

yes it's a much better write up this time

[sam76]

About bloody time!

[surelle]

About bloody time!


LOL I agree, now they should start selling product

[sam76]

Trading Halt requested until Thursday.

hopefully this is the beginning of the good times we've been promised for so long...
;)

[surelle]

we live and pray don't we..... :banghead:

[sam76]

you still in this one Surelle??

I don't know why I keep torturing myself... :banghead:

[surelle]

you still in this one Surelle??

I don't know why I keep torturing myself... :banghead:

yes sadly, I don't know why, but I still believe in it's potential - in theory, this company, with the purchase of Breath-a-tech, should start to make some real progress, due to the increased cases of asthma and CPD, but go figure, every time there is some north bound movement, it falls over again.

Those are who selling out have obviously lost faith (which in hindsight, I should have done ages ago ) so the company needs to pull one mighty big rabbit out of their hat and produce some figures to reinstate their status.

I'm hanging on for a little while longer and will re-assess but until then, my head is getting sorer each day.

How about you?? are you still holding and what r ur thoughts??

:banghead: :banghead: :

[sam76]

yes sadly, I don't know why, but I still believe in it's potential - in theory, this company, with the purchase of Breath-a-tech, should start to make some real progress, due to the increased cases of asthma and CPD, but go figure, every time there is some north bound movement, it falls over again.

Those are who selling out have obviously lost faith (which in hindsight, I should have done ages ago ) so the company needs to pull one mighty big rabbit out of their hat and produce some figures to reinstate their status.

I'm hanging on for a little while longer and will re-assess but until then, my head is getting sorer each day.

How about you?? are you still holding and what r ur thoughts??

:banghead: :banghead: :

I'm still hanging in there as well. The only thing left is for VSG to do is to start selling the actual product!.

The aquistion means instant revenue as well as an established entry into the market.

I really want to bail as I feel so let down by this Company, but i think that a series of + announcements are only around the corner.

Money in the bank.
A proven product.
All approvals stamped (FDA and EUROPE).
Local Market Success.
MASSIVE Internation market share potential
Low manufacturing costs and high profit margin.

And Kids Love it!!!!


I don't know why I'm still in... ah yes... because it has a very good chance of making me money (albeit slowly) :confused: :D

Visiomed develops and commercializes innovative technologies for improved medication delivery and adherence, helping people live normal, healthy and active lives. During the past 12 months the company has significantly repositioned itself focusing on the large and growing
US$28 billion worldwide respiratory diseases market.
The worldwide market for spacers and inhaled drug delivery devices is in excess of US$6B.

Visiomed's initial product, the Funhaler asthma spacer, has captured approximately 6% of Australian market within first 6 months of release; assuming proposed acquisition completed, the company anticipates similar uptake can be achieved in US, EU and Japan markets yielding earnings of estimated US$4 million within 36 months
The Company's product has been demonstrated to increase compliance to prescription medication which could increase revenues to pharmaceutical companies by greater than US$1B annually. Hence successful introduction of product makes Visiomed a likely takeover
target.

The only incentive "spacer" device designed specifically for children. Assists in the delivery of inhaled medication for respiratory diseases (such as asthma). Clinically demonstrated to improve compliance to prescribed medication by 38% and successful medication of children by 60%.
Spacers improve drug delivery, reduce the side effects of medications and are recommended by all major medical organizations. Spacer market forecast to more than triple over the next 5 years.
Market for asthma spacers and similar products worth US$2.8 billion in Australia, USA, the EU and Japan alone. Asthma is the most common chronic childhood disease, affecting 12 - 16% of all children.
Total market for respiratory disease medication delivery devices is US$6.2 billion, representing 485 million affected people. This excludes other new opportunities for inhaled medication, including diabetes, cardiovascular hypertension and other anti-virals and anti-biotics (e.g., HIV, birdflu, herpes, etc.) which represents another US$7.4
billion market.
Within 6 months of release the Funhaler has captured approximately 6% of the Australian spacer market. The company believes similar uptake rates are achievable in the US, European and Japanese markets. Based on published asthma rates and spacer sales, it is estimated that the market for spacers is less than 20% saturated.


Visiomed is undertaking an acquisition of a major supplier of spacers in Australia which has in place a licensing agreement with a leading US-based devices company in the areas of respiratory and sleep apnea. The strategic partnership will give the company accelerated access to worldwide markets. The acquisition will see Visiomed profitable in 2006 / 07 from existing business alone and the dominant player in the Australian spacer market.
The Company has been granted all regulatory approvals in the US (FDA 510), Australia
(TGA) and Europe (CE mark) hence is cleared to commence marketing and sales in these major markets.
Visiomed holds key patents for inhaled drug delivery and improved compliance. Patented
and proprietary technology includes low flow rate valves for the delivery of medication and the incorporation of incentive and feedback mechanisms to drug delivery devices.
Company's core patented technologies applicable to any inhaled drug delivery device. Compliance is key issue in healthcare: less than 45% of patients adhere to their prescribed medication plan and less than approximately 40% of prescribed asthma medication is actually purchased. Improved compliance directly translates to improved healthcare and increased pharmaceutical revenues. The Company's products target improved compliance; the Funhaler has been clinically proven to increase compliance by 38% hence the company is a likely takeover target.
Obvious synergies with licensing partner, including distribution channels, product development and corporate partnership. Distribution discussions underway in Europe and the US already.
Excellent international growth prospects from rapidly growing drug delivery device market.

Large percent of major drugs now off-patent hence generic pharmaceutical companies need differentiation and large pharmaceutical companies need to extend life of patented drugs - hence reformulations for new & improved drug delivery devices with inhaled
delivery the pathway of choice for insulin, anti-virals, antibiotics, hypertensives, etc.
High margin product. Currently completing manufacturing upgrade which will yield high volume, low cost production with gross margins in excess of 70%. Further cost savings realizable in manufacturing, marketing and distribution with acquisition.

Excellent management with strong track record
William F. Dolphin, Ph.D., CEO. Over 20 years of senior executive experience in the med-tech and technology industries. Dr. Dolphin was previously CEO of a U.S. medical technology company which achieved 5 year growth over 6000% with 20% earnings, has been the recipient of prestigious Product Innovation Award from Frost & Sullivan, and was twice recipient of the US National Institutes of Health Research Service Award. Dr Dolphin joined the Company in April 2005.


Summary
High margin product targeting large and growing respiratory disease market (greater than US$6B)
Addresses major issue in healthcare, i.e. compliance. Improved compliance directly translates to
increased revenues to pharmaceutical companies; hence Visiomed is likely takeover target.
Company is significantly undervalued; on cusp of major worldwide launch with patents and all regulatory approvals (US 510K, CE mark) in place.
Experienced management with proven track record.

[sam76]

Last Price +/- % Open High Volume
$0.0130 $0.0020 18.2% 0.0110 0.0130 15,456,391


At last! :)

hopefully some + announcents next week will solidfy the price rise.

[surelle]

Last Price +/- % Open High Volume
$0.0130 $0.0020 18.2% 0.0110 0.0130 15,456,391


At last! :)

hopefully some + announcents next week will solidfy the price rise.


yes finally some interest closed at 17 million volume.....

[surelle]

37 million traded so far this morning - renewed interest from somewhere - wonder who or what, but as long as it improves again :D

[sam76]

i was so close to getting out as well ;)

[surelle]

i was so close to getting out as well ;)

Had the same thoughts coz I was getting very frustrated, but someone's doing my head in by whats been going on lately, hope it continues coz am happy to hang around as long as it behave itself :rolleyes:

[sam76]

having a nice little run this morning.

VSG are due to announce distributors for it's 3 biggest markets; US, Japan and the UK very soon.

Their last quarterly was fantastic - in fact it was the best one in the 5 odd years I've been holding.

Sales up 250% over the quarter (last quarter is traditionally the slowest for spacers as well)

initial commitments for over $1,000,000 worth of sales from existing distributors.

Patents in China and US completed.

High volume low cost manufacturing plants completed.

New management

All things point to a great little company! (we hope) :D

[sam76]

Ex GSK Sales Manager announced to the market yesterday - fantastic news!

Trading Halt today???

Either cap raising (doubt it)

or big distributor signed on (more likely)

All signs are pointing to a massive turn around for VSG

Surelle, are you there? What are your thoughts?

[surelle]

Ex GSK Sales Manager announced to the market yesterday - fantastic news!

Trading Halt today???

Either cap raising (doubt it)

or big distributor signed on (more likely)

All signs are pointing to a massive turn around for VSG

Surelle, are you there? What are your thoughts?

yes, I'm still here:confused: why, I don't know....oh yes I do, I have some money invested in this !!!!! I tend to agree with you, they have a new sales manager and he's come in with some (hopefully) grand ideas and they need some MORE cash to get on with it....and in principal i'm excited but i don't want to get too excited again......hey, maybe now they have the guy from the opposition working for them, maybe the opposition has made them a takeover offer too good to refuse....:D (what a way to start a rumour !!!)

I hope you are right about those signs Sam coz :banghead:
LOL - fingers crossed

[sam76]

Major US Distributor announced!

I'm on 20 min delay, so I don't know details, but might be good for a quick trade for you guys

[surelle]

Major US Distributor announced!

I'm on 20 min delay, so I don't know details, but might be good for a quick trade for you guys

well......i was wrong again (boy do I live in hope???):o
some decent trades today....hope they continue

[sam76]

well......i was wrong again (boy do I live in hope???):o
some decent trades today....hope they continue


OHHHHHHHH YEAHHHHHH :cool:

Visiomed Secures Major UK Distributor for Funhaler®Initial commitment of 112,000 units during first 2 Years
Agency arrangements include Boots Chemists and Lloyds Pharmacy distribution Contract lifts total committed sales for Funhaler over next 2 years to $6MPlacement to raise $1 million to support international marketing efforts.Visiomed Group Ltd (ASX: VSG) has signed an initial 2-Year Agreement with major
UK medical distributor Clinisupplies Ltd to supply its innovative Funhaler® paediatric incentive asthma spacer throughout major retail pharmacy outlets including Boots
and Lloyds, two of the UK's largest pharmacy chains. Secures Major UK Distributor. The Agreement will see Visiomed supply UK pharmacies
with an initial 32,000 units during Year 1 of the contract and 80,000 units during Year 2,
commencing mid 2007.
Visiomed Chief Executive Officer Dr William Dolphin said: "During the last Quarter we have expanded our distribution network significantly, signing on leading distributors in major
overseas markets including the US and Europe.
"With the addition of Clinisupplies for the UK we now have in excess of US$6 million in
committed sales for the Funhaler in overseas markets during the next 2 years; this is in
addition to strong revenues from the Funhaler and Breath-A-Tech spacers in Australia
where Visiomed is the market-leading spacer manufacturer, and from royalties generated
through our licensing agreement with US-based Respironics."
According to a recent report from the Global Initiative for Asthma (GINA), the UK has one of
the highest prevalence of asthma in the world, with the condition afflicting an estimated
18.4% of the population.
"Presenting the Funhaler®to the major UK market via globally recognised pharmacies like Boots and Lloyds is a significant achievement for Visiomed. With a population of
approximately 61 million and an extremely high prevalence of asthma, the UK is an
important and influential market within the European Community," Dr Dolphin said. "We are
very pleased to be working with a group having the outstanding sales history and healthcare
market penetration of Clinisupplies."
The contract pricing with Clinisupplies, whilst agreed, is conditional upon approval of
proposed pricing by the UK National Health Service Business Services Authority. An application in this regard has been lodged with the BSA by the Company. In the unlikely
event proposed pricing is not approved the contract pricing terms may have to be amended. CliniSupplies is expected to commence UK product sales in mid-2007, assuming Visiomed's
NHS BSA application is successful.
The Funhaler®is already CE Marked and has required regulatory approvals for sale into Europe and the UK.
Placement to Raise $1 Million. The Company is pleased to confirm a Placement of 60
million shares at 1.7 cents to sophisticated investors. The Placement will raise
approximately AU$1 million (net of costs) and includes 1:3 attaching unlisted options at 2.5 cents expiring in 18 months. Following the Placement the Company will have cash and
cash equivalents of approximately AU$2.4 million. The funds raised will supplement existing working capital and will be applied primarily to the expansion of overseas distribution of the
Funhaler®asthma spacer into the USA and European markets.

[surelle]

see... I told you I live in hope:D
Lets keep fingers crossed that this will help boost this one a little

[sam76]

VSG is starting to become a solid little stock.

Great rises over the last couple of days nice move through 2cps

Volume is picking up as well.

Srong crossover MACD

It's either one of three things;

1: Takeover by larger company
2: New distributor (UK, Japan)
3: A distributor reordering (US, EU)

My first Chart - baby steps, Sam, baby steps...

:D

Can someone more experienced tell me what they see from the chart. ta.

[surelle]

Hey there Sam

Still hanging in there huh??? well, so am I

Very much doubt there is a takeover (but then again I have been known to be wrong before):D

Let's just hope it continues....

[moses]

I'm no chart genius, but surely this is one very nice chart. There's movement at the station, the director is buying into the stock, the company is appointing distributors...

[surelle]

yes the director is buying up - another ann. this afternoon - lets hope he knows something that we don't:D coz I've been hanging in there (by a very short rope) for a long time....

[sam76]

Hey Surelle,

How good is it to see someone else on this board?

Welcome Moses!!

:D

VSG up 42% in the last 20 days.

[surelle]

yes it's great to see a newcomer - excuse my poor manners moses - welcome

how good has June been to VSG for a change and there's been some good vol today - 12mill.

[surelle]

someone's interested in this one this morning....but who's complaining - not me

Sam what do you think??

[sam76]

Hey Surelle,

Sorry been with clients all morning.

Something is definately up with with VSG.

what it is I don't know, but I'm glad I held on over the years. My holding is up over 70% now. (I'm glad I averaged down!)

What's your strategy for these? Are you sticking with them or taking profits?

I'm holding on as I think there is a lot more good things to come.

either way, we deserve a bit of love for holding on!!

[Uranium]

Hello,

I thought that i would mention that their was a small breakout yesterday with 80 million shares traded.this was due to an announcement relating to a Chinese patent that was granted.(“Improved drug delivery device).I assume that the volume will increase today maybe not as high as nal but it certainly has a better financial position then NAL. And looking at the charts i suspect that it could be included as a potential breakout.IMO
Anyway i will be closely watching today as i have a small parcel.Good luck all.:)

http://www.asx.com.au/asx/statistics/announcementSearch.do?method=searchByCode&releasedDuringCode=W&issuerCode=VSG

[surelle]

Hi Uranium, you're new to this thread -welcome to the new blood
Sam, sorry didn't see your reply

yes, finally some good news - lets hope that this will help them make a BIG push into the Chinese market - I am still holding these babies coz I still think they have potential to grow and they are certainly showing proactive development.

But then, I have been known to be wrong in the past :o

Hey sam, you still holding???

[sam76]

Hey Surelle,

Yep, I'm still here and watching VSG closely.

Some nice heavy buying this afternoon after Wednesday's dump.

I've been buying on weakness as the worst is now behind us.

The China announcement really put VSG on the radar for a lot of people out there. Unfortunately a few day traders got caught earlier on in the month when she rose 50% in a couple of hours. The sell side will be gone on the next positive announcement (which will most likely be the quartely).

I picked up a few of the oppies as well for a punt.

:D

[surelle]

too funny, we live in hope heh?

I can't wait for them to do some dancing and start moving

I'll keep on hoping for both of us:D

[sam76]

too funny, we live in hope heh?

I can't wait for them to do some dancing and start moving

I'll keep on hoping for both of us:D

Looks like we're in another trading halt, Surelle.

Announcement out Thursday.

I'm expecting it to be distributor agreements with either Japan or Germany (or at least positive news)

VSG have traditionally gone into a halt for large-scale agreements (uk and US)

fingers crossed.

Sam

[surelle]

Hey there Sam

I think you're right, they have, in the past, halted for a distributor ann.

I've even got the toes crossed on this one (not just the fingers).:D

Onwards and upwards I always say ;)

[sam76]

Hey there Sam

I think you're right, they have, in the past, halted for a distributor ann.

I've even got the toes crossed on this one (not just the fingers).:D

Onwards and upwards I always say ;)

well I wasn't right about the distributor agreement.

Not sure how to take this at the moment, but hopefully we do alright out of it.

Deliver, Comply and Monitor
ASX Release
10 October 2007
VISIOMED GROUP AND CLINICAL CELL CULTURE
ANNOUNCE MERGER
Visiomed Group Limited (Visiomed, ASX: VSG) and Clinical Cell Culture Ltd (C3,
ASX: CCE) today announced a merger proposal by way of schemes of arrangement
under which C3 will make offers to acquire all of the issued securities in Visiomed.
Under the terms of the proposed schemes of arrangement ("Schemes"), Visiomed
shareholders will receive 5 C3 shares for every 7 Visiomed shares held. Holders of
Visiomed listed options will receive 5 new C3 options for every 7 listed Visiomed
options they hold.
In addition to the Visiomed listed options, Visiomed has unlisted options which will be
dealt with via individual conditional agreements.
Upon completion of the merger, Visiomed shareholders will own approximately 53% of
the expanded company and C3 shareholders will own approximately 47%.
The schemes of arrangement will be subject to conditions including:
• satisfactory completion of due diligence by the Boards of both companies;
• Visiomed security holder approvals and court approvals in respect of the
Schemes;
• all relevant regulatory approvals; and
• other conditions customary for a public transaction of this nature.
Visiomed and C3 have entered into a Merger Implementation Agreement and the
parties have agreed to share all of the costs of the merger and implementation of the
Schemes.
Visiomed CEO Dr Bill Dolphin said the merger represented an outstanding opportunity
for the Company’s shareholders.
“C3’s offer provides Visiomed the opportunity to extend our product portfolio and fast
track the expansion of our flagship Funhaler® and Breath-A-Tech asthma spacer
products into international markets,” said Dr Dolphin.
“C3 is based in the UK, has significant experience in the medical device arena, a
thorough understanding of the European market and a comprehensive infrastructure
and sales network already in place – all of which will be of enormous immediate benefit
2
to Visiomed’s sales and marketing efforts in the region. In turn, C3 will benefit from
Visiomed’s existing product revenue stream, our presence in and familiarity with the US
medical market, and our knowledge and experience in working with the US FDA
regulatory process.”
Dr Dolphin said that given C3’s strong cash position, the merger would also provide
Visiomed with added financial capability to support further profitable growth.
“This merger is in line with our stated strategy of pursuing partnerships and strategic
alliances with companies that operate in the medical device space and that provide
Visiomed with the ability to grow the business on an international scale,” he said.
“We are excited at the prospect of merging our business with C3 and believe the offer
provides an excellent opportunity for Visiomed shareholders to maximise the value of
their investment while also becoming part of a larger, more progressive biomedical
company.”
C3 Chief Executive Officer Andrew Cannon said the merger of the two organisations
would create a medical device group with increasing revenue and a strong cash
position – placing both companies in a stronger position for growth.
“This is a merger of two similar medical device companies – C3 a producer of tissueengineered
products and Visiomed a producer of respiratory devices,” said Mr Cannon.
“The strategy is to create a stronger, more financially robust company and a stronger
balance sheet, better cashflows and a more attractive investment for shareholders of
both organisations.”
Mr Cannon said C3 believed there was enormous potential for Visiomed’s asthma
spacer products.
“There are distribution agreements already in place throughout North America, Europe,
the Middle East and Australasia. As well as diversifying our existing product range, the
merger will provide C3 with access to additional product revenue streams generated
through product sales in Europe and Asia and ahead of FDA approval of ReCell® for
the US market,” he said.
“We remain committed to the commercialisation of ReCell® and are focused on
securing FDA approval for sale of the product in the US.
“However, as we explained at the time of our strategic review in March 2007, we are
also committed to ensuring the company’s cash resources are focused on maximising
returns for shareholders and we believe merging with Visiomed is in line with that
objective.
“We see this merger as very much a win-win situation for both companies and their
respective shareholders.”
3
Benefits to Visiomed shareholders
• Balance sheet to support the implementation of the company’s expansion
strategy
• Infrastructure in UK and Europe to provide support for the commercialisation of
spacer products: Funhaler® and Breath-A-Tech
• Access to understanding and knowledge of the European biotech market
• Larger scale and greater geographic diversification
• Scale and synergy benefits
Benefits to C3 shareholders
• Builds revenue base
• Immediate access to product revenue streams
• Diversifies C3 range of medical devices
• Leverages C3’s existing European markets infrastructure
• Access to understanding and knowledge of the US biotech market and
regulatory environment
• Improved value proposition
• Diversified shareholder base
The merged entity will be headquartered at C3’s existing head office location in
Cambridge, UK. Both companies will continue to trade under their existing business
names until completion of the merger and while consideration is given to determining
branding for the long term.
It is envisaged that both companies will be equally represented at Board level and the
current executive directors will share responsibilities.
A transaction timetable will be provided to shareholders in due course.
The C3 shares to be issued as scheme consideration will rank equally with other
issued C3 shares and the C3 options will be listed and have an expiry date of 30 March
2008 and exercise price of 24 cents.
C3 and Visiomed security holders do not need to take any action at this time.
Visiomed security holders will be provided with a Scheme Booklet in due course
outlining the proposal in greater detail.
Key steps to be undertaken include:
• lodgement of Scheme documents with ASIC;
• obtaining Court approval to hold the Scheme meetings for security holders to
vote on the Schemes;
• obtaining Visiomed security holders approval for the Schemes; and
• if Visiomed security holders approve the Schemes, Court ratification of the
Schemes.
-ENDS4
FOR FURTHER INFORMATION PLEASE CONTACT:
Andrew Cannon John McGlue
Clinical Cell Culture Porter Novelli
Tel: +44 (0) 1223 341 150 Tel: +61 (0) 8 9386 1233
Email: investor@clinicalcellculture.com Mob: +61 (0) 417 926 915
Bill Dolphin Sarah Allchurch
Visiomed Group Allchurch Communications
Tel: +61 (0)8 9389 0700 Tel: +61 (0) 8 9381 6625
Email: wdolphin@visiomed.com.au Mob: +61 (0) 412 346 412
About Visiomed Group Ltd
Visiomed Group (ASX: VSG) develops and commercialises innovative medical
technologies for improved medication delivery and adherence in patients suffering from
chronic respiratory diseases, providing the interface between patient and their medication.
Visiomed manufactures and sells a range of spacers for the paediatric, adolescent and
adult market and is the leading provider of spacers in Australia. More than 350 million
people suffer from asthma and COPD (chronic obstructive pulmonary disorder, including
chronic bronchitis and emphysema) and are candidates for the company’s spacer products.
The Funhaler® paediatric incentive spacer and Breath-A-Tech spacer products are covered
by international patents issued and pending. The coverage extends to protection of a wide
range of alternative incentive modules and complimentary applications. The Funhaler® is
CE marked for the EU, FDA cleared for the US and TGA registered in Australia.
www.visiomed.com.au
About Clinical Cell Culture
Clinical Cell Culture (C3, ASX: CCE) is a publicly listed biomedical company that develops
and distributes tissue-engineered products for the treatment of wounds and other skin
defects. Using proprietary tissue-culture/ collection technology, C3 is able to provide
innovative treatment solutions derived from the patients own skin, to enhance healing rates,
reduce scar formation and reintroduce pigmentation into the skin.
Its flagship product, ReCell® (www.recell.info) is a stand-alone, rapid cell harvesting device
that enables surgeons to treat skin defects using the patient’s own cells that are collected
during surgery. The surgeon can prepare a small quantity of cells within 30 minutes on site
rather than having to send a biopsy to the laboratory. ReCell® has been designed for use in
a wide variety of plastic, reconstructive and cosmetic procedures.
ReCell® is approved for sale in Australia, Brazil, Canada, Chile, Croatia, European Union,
Hong Kong, Israel, Japan, Malaysia, New Zealand, Norway, Singapore, South Africa,
Switzerland and Turkey. The company is currently focused on securing FDA approval for
sale of the product in the USA.
www.clinicalcellculture.com

[Greg52]

Hey Guys,

I think we have to hope CCE prices rise because they now determine the price of VSG

ie. CCE is currently at 0.035

that means VSG is currently worth 0.025 or = 0.035/7 * 5, at time of merger


cheers

Greg